I recently wrote a Seeking Alpha article about Wingstop (WING), which has a market cap of about $10.8 billion. I see it as richly valued, but today I was looking at Trump Media & Technology Group Corp (DJT). If WING is overvalued, DJT is an outright joke, with shares trading today around $54, it has a market cap of $10.8 billion, the same as WING! I pulled up their last 10-Q filing from August 2024, and quarterly revenue was $837K - yes, just $837,000. Earnings are negative due to high SG&A and R&D expenses.
TTM revenue would run around $3.2 million, which would give a whopping P/S ratio of 3,377. The reported short ratio per WSJ is 17.5% as of 10/15/24. I couldn't resist opening a short position of 100 shares, because the stock is trading purely on momentum and no fundamentals. The daily borrow fee is hefty, so I'm betting the hype dies off shortly after the election. Shares have run up about 359% from the low on 9/24/24. I will short more if the price moves away from me, which is certainly possible given the short interest and other momentum traders.